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RNS Number : 2213I
HG Capital Trust PLC
10 June 2011
HgCapital Trust plc will participate in the acquisition of a
majority stake in Mainio Vire alongside other institutional clients
of HgCapital. The Trust, whose shares are listed on the London
Stock Exchange, gives private and institutional investors the
opportunity to participate in all HgCapital's investments. It will
contribute approximately GBP12.5 million to the investment. Based
on the 31 May 2011 NAV and the impact of this transaction, liquid
resources are estimated to be GBP89.6 million (25% of the 31 May
2011 NAV) and the Trust's undrawn commitment to Hg6, Hg5, RPP and
RPP2 is GBP193 million.
Set out below is the text of a press release issued today by
HgCapital announcing the acquisition.
HgCapital acquires Finland's leading social care operator,
Mainio Vire
London, 10 June 2011: HgCapital, the European sector-focused
private equity investor, has today announced the acquisition of
Mainio Vire, Finland's leading social care company, from MB Funds,
a Finnish private equity fund.
The acquisition represents a continuation of HgCapital's
thematic, sector-driven investment strategy, with Mainio Vire being
HgCapital's 6(th) investment in the health and social care services
market. HgCapital's other current investments in the sector are
Voyage in the UK, Frosunda in Sweden and Casa Reha in Germany. The
Nordic healthcare market has multiple attractions which underpin
this transaction: favourable macro demographics, a solid public
funding environment, a highly fragmented market and a strong trend
towards private provision of care. HgCapital's experience with
Frosunda has been very positive and highlights the value creation
opportunity present in the Nordic health care market.
Founded in 1997, Mainio Vire was one of the first private social
care companies in Finland and it has grown rapidly via a
combination of opening new care homes and selected small
acquisitions to become the market leader in Finland. Today, Mainio
Vire is the largest social care company in Finland with forecast
sales of EUR62 million in 2011 (up 21% year on year) and, from 2008
to 2010, it grew sales at 14% CAGR.
Mainio Vire provides services in four business areas: elderly
care, mental health, child day-care and home services. The company
operates 54 care homes with 1,675 beds and seven child day-care
centres with 360 places. Mainio Vire has one of the widest
geographic footprints in the sector and is strongest in the
regional economic centres located in the southern and central parts
of Finland. Approximately 1,150 people work at the Company and over
800 of these people have formal social or healthcare education.
Commenting on the investment, Carl Harring and Justin Leong,
Directors at HgCapital, said: "Mainio Vire is a very attractive
business in a fragmented, high growth market. The company, with its
strong management team, class leading systems and quality control
processes, offers us an excellent platform for growth. We have
identified multiple opportunities to create value through organic
growth in its current and adjacent sub-sectors and through
potential bolt-on acquisitions."
Kristiina Hautakangas, CEO of Mainio Vire, said: "We are
delighted about our new owners and their in-depth knowledge of the
social care sector. The Finnish market is going through a
transition period that offers many exciting opportunities to Mainio
Vire and we look forward to going through our next phase of growth
together with HgCapital."
The acquisition is anticipated to complete within four weeks.
HgCapital was advised in this transaction by SEB Enskilda in
Finland.
- Ends -
For further details please contact:
HgCapital: Carl Harring +44 (0) 20 7089 7935
Maitland: Neil Bennett +44 (0) 20 7379 5151
George Hudson
About HgCapital
HgCapital is a private equity investor focused on the European
middle market. Its business model combines sector-specific thematic
investing with dedicated portfolio management support. HgCapital
seeks to invest in growth companies in expanding sectors which
create jobs across Western Europe.
HgCapital is also an investor in renewable energy, establishing
itself as a market leader by building a dedicated energy investment
team in 2004. It continues to invest a dedicated fund in a range of
renewable power technologies across Western Europe.
HgCapital manages over GBP3.3 billion for some of the world's
leading institutional and private investors. For further details,
please see www.hgcapital.com.
About HgCapital Trust plc
HgCapital Trust plc is an investment trust whose shares are
listed on the London Stock Exchange. The Trust is a client of
HgCapital, giving investors exposure to a portfolio of high-growth
private companies, through a liquid vehicle. New investments and
existing portfolio companies are managed by HgCapital, an
experienced and well resourced private equity firm with a long-term
track record of delivering superior risk-adjusted returns for its
investors. The Trust has won the Investment Week Private Equity
Investment Trust of the Year in 2005, 2006, 2007, 2008, 2009 and
2010. For further details, please see www.hgcapitaltrust.com
About Mainio Vire
The company was established in 1997 and was one of the first
private social care companies in Finland. In 2004 it was acquired
by Medivire Hoiva, a healthcare company owned by MB Funds (Finnish
private equity fund). In 2007, the occupational health part of
Medivire was sold to Terveystalo (now owned by Bridgepoint), and MB
Funds retained the social care part of the company - Mainio Vire.
The Company has grown via a combination of rollout (new care home
developments) and rollup (bolt-on acquisitions). Mainio Vire is the
largest social care company in Finland with forecast EUR62 million
sales in 2011 (up 21% year on year) and 3.6% share of the private
market.
Mainio Vire provides services in four business areas: elderly
care, mental health, child day-care and home services. The company
operates 54 care homes with 1,675 beds and 7 child day-care centres
with 360 places. Mainio Vire has one of the widest geographic
footprints in the sector and is strongest in the regional economic
centers located in the southern and central parts of Finland.
Approximately 1,150 people work at the Company, and over 800 of
these people have formal social or healthcare education.
http://www.mainiovire.fi/
Neither the contents of HgCapital's or Mainio Vire's website nor
the contents of any website accessible from hyperlinks on the
websites (or any other website) is incorporated into, or forms part
of, this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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